Gainesville Sweetbay soon will be converted to a Winn-Dixie

Bi-Lo Holdings received regulatory approval Tuesday to buy 165 grocery stores from Delhaize Group, clearing the way for Sweetbay Supermarket stores to convert to Winn-Dixie stores by summer.

By Anthony ClarkBusiness editor

Bi-Lo Holdings received regulatory approval Tuesday to buy 165 grocery stores from Delhaize Group, clearing the way for Sweetbay Supermarket stores to convert to Winn-Dixie stores by summer.The conversions will take place sometime between March 22 and May 31, according to Winn-Dixie spokeswoman Tiffany Hutto.The deal includes 72 Sweetbay stores and leases for 10 closed Sweetbay locations, 72 Harveys stores and 11 Reid's stores.Bi-Lo will keep the Harveys name, including at the locations in Melrose and Lake City.The Sweetbay stores in Gainesville, Ocala and Belleview will convert to Winn-Dixies.The Dunnellon Sweetbay will become a Rowe's IGA, as will locations in Arcadia, Wauchula and Lake Placid, as part of an agreement for Bi-Lo to divest ownership in 12 stores included in the deal.Jacksonville-based Bi-Lo and Brussels-based Delhaize Group announced the $265 million transaction agreement in May 2013 and received transaction approval from the Federal Trade Commission on Tuesday.Sweetbay stores will close for a short time to prepare to reopen as Winn-Dixie. These stores will keep Sweetbay employees.Bi-Lo Holdings, parent of BI-LO and Winn-Dixie grocery stores, currently operates nearly 700 stores in the southeastern U.S. Bi-Lo bought the 480-store Winn-Dixie chain in December 2011.Sweetbay was created from the Kash N' Karry brand in 2004, converting the Gainesville store at 2002 SW 34th St. in 2007.The conversion will give Winn-Dixie three stores in Gainesville.